Euro-Zone Private Sector Grows at Fastest Pace in Almost a Year
The Composite Purchasing Managers' Index compiled by S&P Global rose to 51 in July from 50.6 in June, further above the 50 threshold separating expansion from contraction. Analysts had predicted a reading of 50.7.
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Yahoo
25 minutes ago
- Yahoo
After a blown deadline, what next for US-Canada trade?
A self-imposed deadline for a new US-Canada trade deal came and went on Friday. So what happens next for these two deeply entwined neighbours? Canada and the US have been locked in a tariff war for six months and, despite talk of "intense" negotiations in recent weeks, a trade agreement remains elusive. Both President Donald Trump and Prime Minister Mark Carney have poured cold water on the idea they will reach a quick, and tariff-free, deal. And Trump's open criticism of Canada's move to recognise a Palestinian state dashed hopes for a last-minute agreement earlier this week. The pessimism marks a shift in tone from as recently as June's G7 meeting, when the two leaders set themselves the summer deadline. Canadian negotiators have come to the conclusion that "it's not the end of the world" if a quick deal isn't reached and "that quality over speed and a rushed agreement matters a lot", said Fen Hampson, a professor of international affairs at Carleton University in Ottawa. Carney - who has been tight-lipped about the negotiation details - has said as much himself, repeating that just "any deal" won't do. Still, there are pressures on both sides to give businesses a reprieve. Conservative leader Pierre Poilievre said on Friday he shares "Canadians' disappointment" that a deal was not reached by the deadline. He urged Carney's Liberals to do more to "take back control of our economic future". Canada is now facing a 35% tariff rate, though there is a carve out for goods compliant under a current free trade deal. American global tariffs on steel, aluminium, autos and auto parts are hurting, as the US is a top market for those sectors. On Sunday, Canada's minister for US-Canada trade Dominic LeBlanc told the BBC's US partner CBS News that trade talks will continue, and that negotiations so far have been "informative, constructive and cordial." LeBlanc added he expects Carney and Trump to speak again in the coming days. "We think there is an option of striking a deal that will bring down some of these tariffs, and provide greater certainty to investment," he said. The Trump administration has justified those tariffs by claiming a lack of co-operation on stemming the flow of illicit drugs like fentanyl. Canada denies that, noting about 1% of US fentanyl imports originate in Canada. It has also brought in new border protections and a "fentanyl czar" in recent months in an effort to address Trump's concerns. Threatened tariffs on copper and the expected end of a global tariff exemption used by shoppers of goods under $800 could also pinch. Canada has responded with C$60bn ($43.3bn; £32.3bn) in counter tariffs on various American goods - the only country along with China to directly retaliate against Trump. "It comes as no surprise that businesses are craving certainty after months and months of tumultuous announcements," said Catherine Fortin-Lefaivre, vice-president of international policy and global partnership at the Canadian Chamber of Commerce. "But at the same time, they're not craving certainty at the expense of a really bad deal." A few factors give Canada some breathing room. On paper, it looks like the country is facing a severe tariff rate from the US, but trade is currently more free than the levies suggest at first glance. In March, Trump announced a tariffs reprieve on goods compliant with the Canada–United States–Mexico Agreement, known in Canada as CUSMA and the US as the USMCA. That deal - negotiated during Trump's first term in office - came into force five years ago. Almost 90% of Canadian exports to the US are ultimately able to cross the border duty free, if firms file out necessary paperwork, under that agreement. "That has given us a buffer, no question about it, that other countries don't have right now," said Prof Hampson. It means Canada is overall paying a much lower tariff rate than many of the deals already inked with the US, like the EU, South Korea and Japan at 15%, or Indonesia and the Philippines at 19%. Ottawa has also brought in some relief programmes for affected industries and has also collected about C$1.5bn more in import duties than in the same period last year, due to the counter tariffs. Why Trump's global tariffs 'victory' may well come at a high price See the Trump tariffs list by country Five things now pricier in Canada due to tariffs 'In business, indecision is killer' - Canadian firms seek certainty And while in the US consumer confidence is up and prices there have remained contained, it helps Canada's negotiating position if they can wait for Americans to start feeling the pain of tariffs. "It's Americans who are going to squawk," said Prof Hampson. Ms Fortin-Lefaivre predicts US businesses, especially smaller firms that don't have the same resources to withstand them, will be pressuring political leaders. "So that pressure could play to our advantage," she said. Canadians also appear willing to give the new prime minister some leeway. Opinion polls suggest they are generally satisfied with his handling of trade. Carney "understands that doing what's best for the economy right now is actually what's best for him politically", Martha Hall Findlay, director of the University of Calgary's School of Public Policy and a former Liberal MP, told the BBC. Trump has said he is imposing tariffs to boost domestic manufacturing, open overseas markets and raise money for the government. He is also using them to push countries like Canada on a range of non-trade issues, including military spending. In the last few weeks, Ottawa has significantly ramped up its defence spending, boosted security at the shared border and killed a digital tax opposed by American tech firms. Those moves show Canada is "doing what the Americans wanted us to do", said Ms Fortin-Lefaivre. She hopes Canadian negotiators are pushing for tariffs to be as low as possible, as well as working to ensure the two deeply integrated supply chains are able to continue working together. Canada is pressing for relief on the 50% steel and aluminium tariffs, which are squeezing US automakers. And on Thursday, Treasury Secretary Scott Bessent signalled in an interview with CNBC that is an option on the table. Trump meanwhile, has raised a number of longstanding trade irritants besides fentanyl, including Canada's protections around its dairy industry. Ottawa has previously warned of more countermeasures to come if talks collapse, though political appetite for that may be waning. Retaliatory tariffs "haven't seemed to have had the kind of impact that we would hope for", British Columbia Premier David Eby recently told Bloomberg. On retaliation, Prof Hampson said: "The Americans have escalation dominance here. So you want to be smart about it." A spokesperson for Carney declined to say whether more countermeasures remained on the table. Meanwhile, Canadian negotiators have been in Washington most of this week and keep pushing talks forward, with the minister responsible for Canada-US trade saying on Friday an acceptable agreement "was not yet in sight". "We all crave the certainty of a deal," said Ms Fortin-Lefaivre. But research by her business group suggests firms are making contingency plans. Almost 40% of goods exporters have already diversified suppliers outside the US, and 28% have diversified buyers. They are also looking ahead to what may be more challenging talks with CUSMA, which has proven a critical backstop, as it is up for review next year. It is all part of a wider push by the country to diversify trade away from the US, pull down barriers that have hindered trade between provinces, and press forward more quickly on major projects. The economic links between the two countries will stay strong - Canada will still be one of the largest trading partners and economic and security allies of the US. But the irony is that Trump's threats may be "forcing Canada to understand we have to get our own economic house in order," said Ms Hall Findlay. "It's going to take some really tough decisions. And I do think our current government gets this." Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
25 minutes ago
- Yahoo
Tariffs, Earnings and Other Can't Miss Items this Week
Markets enter a critical week following Friday's dramatic selloff that delivered the worst one-day loss in months for major indexes, despite the Nasdaq and S&P 500 ($SPX) (SPY) hitting record highs Thursday. The market rally's sudden reversal came amid a disappointing July jobs report that revived Fed rate cut hopes while simultaneously raising concerns about economic momentum, compounded by rising core inflation readings. President Trump's implementation of new tariff rates for dozens of countries effective August 7 adds another layer of uncertainty, while his controversial firing of the Bureau of Labor Statistics head following the jobs report has raised questions about the integrity of future economic data. This week's economic calendar centers on Tuesday's ISM Services index, which economists expect to rise to 52.2 from 50.8, potentially signaling accelerating expansion in the economy's largest sector. Key earnings from Advanced Micro Devices (AMD), Disney (DIS), and other major companies will test whether corporate fundamentals can support recent market highs amid growing macro uncertainties. Here are 5 things to watch this week in the Market. More News from Barchart 3 Highly Shorted Stocks That Could Be the Next Wall Street Sensations The Saturday Spread: How to Use Descriptive Math to Play the Hand, Not the Dealer This Dividend King Just Issued a Tariff Warning. Is Its Reliable Yield Enough to Soften the Blow? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Services Sector Economic Pulse Tuesday's ISM Non-Manufacturing PMI at 10am takes center stage as the week's most important economic release, with economists forecasting a rise to 52.2 from June's 50.8 reading. This report will provide insights into the services sector, which comprises the largest portion of the U.S. economy, particularly important after Friday's weak jobs data raised questions about economic momentum. The services PMI's employment component will be closely watched for confirmation or contradiction of the disappointing payrolls report, while the prices paid index could offer additional inflation signals. Tuesday's earlier Services PMI reading at 9:45am will provide a preliminary gauge before the comprehensive ISM report. Given recent concerns about economic growth and the Fed's policy outlook, any significant deviation from expectations could trigger substantial market volatility. A strong reading might alleviate recession fears while potentially tempering rate cut expectations, whereas weakness could reinforce concerns about economic deceleration. Technology Earnings Under Pressure The semiconductor sector faces scrutiny with Advanced Micro Devices (AMD) reporting Tuesday amid ongoing questions about AI chip demand sustainability and data center spending patterns. AMD's results will be particularly important given recent volatility in chip stocks and investor concerns about inventory levels and demand visibility. The report comes as markets assess whether the AI infrastructure buildout can justify current valuations in the semiconductor space. Other notable technology earnings include Arista Networks (ANET) Tuesday, providing insights into networking equipment demand, and Airbnb (ABNB) Wednesday, offering perspective on travel and leisure spending trends. Palantir (PLTR) Monday will provide insights into enterprise software and government contract trends. Given the recent market selloff and concerns about stretched valuations in technology, these earnings results could significantly influence sector sentiment and broader market direction. Consumer and Industrial Bellwethers Wednesday delivers a trio of major consumer-facing earnings with Disney (DIS), McDonald's (MCD), and Uber (UBER) reporting results that will provide comprehensive insights into consumer spending patterns. Disney's results will offer perspective on streaming growth, theme park attendance, and content spending amid intensifying competition in entertainment. McDonald's will provide insights into quick-service restaurant trends and consumer price sensitivity, particularly important given ongoing inflation concerns. Uber's earnings will shed light on ride-sharing demand and food delivery trends, offering another angle on consumer behavior. Tuesday's Caterpillar (CAT) earnings will provide crucial insights into global industrial activity and infrastructure spending, while Pfizer (PFE) will offer perspective on pharmaceutical trends and healthcare spending. Tariff Implementation and Market Impact President Trump's implementation of new tariff rates for dozens of countries effective Wednesday, August 7, creates a significant market catalyst that could influence trading patterns throughout the week. The timing coincides with key earnings releases and economic data, potentially amplifying market reactions as investors assess the combined impact of trade policy changes and corporate fundamentals. Companies with significant international exposure, complex supply chains, or import dependencies could face renewed scrutiny during earnings calls as management teams address potential cost impacts and mitigation strategies. The tariff implementation follows Friday's market selloff, creating additional headwinds for risk assets and potentially influencing Fed policy considerations if trade restrictions contribute to inflation pressures. Sectors particularly vulnerable include retail, technology hardware, automotive, and industrial companies with global operations. Bond Market and Data Reliability Concerns Wednesday and Thursday's Treasury auctions—10-year notes Wednesday at 1pm and 30-year bonds Thursday at 1pm—will test investor appetite for government debt amid ongoing concerns about fiscal policy and inflation trends. The auctions come as markets grapple with mixed signals from recent economic data and uncertainty about Fed policy direction following Friday's disappointing jobs report. Thursday's initial jobless claims at 8:30am will provide another employment data point, though President Trump's firing of the Bureau of Labor Statistics head raises questions about data integrity and potential political interference in economic reporting. This controversy could influence how markets interpret future economic releases and complicate Fed policy decision-making. The bond auctions will be closely watched for signs of foreign demand and domestic investor appetite, particularly given ongoing concerns about government spending and debt levels. Best of luck this week and don't forget to check out my daily options article. On the date of publication, Gavin McMaster had a position in: SPY. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
TechCrunch
26 minutes ago
- TechCrunch
SAP is acquiring SmartRecruiters
In Brief SAP announced Friday that it has reached an agreement to acquire recruiting software company SmartRecruiters. In a press release, the European software giant said that SmartRecruiters 'powerful, user-friendly interfaces and seamless workflows' will complement SAP's existing HR tools. Muhammad Alam, the SAP executive board member who leads product and engineering, said in a statement that with this acquisition, 'Customers will be able to manage the entire candidate lifecycle — from sourcing and interviewing to onboarding and beyond — all in a single system to streamline the experience for recruiters, hiring managers and, in particular, candidates.' The terms of the acquisition were not disclosed. The deal is expected to close in the fourth quarter of this year. SmartRecruiters' last announced round of funding was a $110 million Series E in 2021, which valued the company at $1.5 billion.
